
Adult buyers now outnumber preschool parents in toy purchases, a surprising trend emerging in 2024. This unexpected change reveals how toy companies are adapting their market strategies dramatically.
The numbers paint an impressive picture. American consumers spend roughly $28 billion on toys each year while the industry continues to innovate. Market projections show the global AI toy segment reaching $35.11 billion by 2030. The baby toys category should grow to $19.49 billion by 2031.
Seven industry giants revolutionize the toy landscape through sustainable manufacturing and AI integration. These companies' expert strategies go beyond selling toys to shape play's future in 2025. Their innovations challenge traditional boundaries and create new possibilities for interactive entertainment.

Image Source: Mattel
Mattel is the life-blood of major toy companies, with its market capitalization reaching USD 6.10 billion as of January 2025. The company has gained market share by breathing new life into its iconic brands.
Mattel's Market Dominance and Revenue
The company's financial performance shows its market strength, with a gross margin increase to 48.0% in early 2024. Its North America segment grew revenue by 2%, thanks to Hot Wheels' success. The company wants to save USD 200 million by 2026 through cost-saving initiatives.
Mattel's Iconic Brands and Product Lines
Mattel's brand portfolio has some of the most recognizable names in the toy industry:
Brand Category | Notable Brands |
Fashion & Dolls | Barbie, Monster High, Polly Pocket |
Vehicles | Hot Wheels, Matchbox |
Preschool | Fisher-Price, Thomas & Friends |
Games | UNO, Skip-Bo |
The company's brands continue to perform well across segments. Hot Wheels showed remarkable growth with a 5% increase in worldwide gross billings. The company's strategic collaborations have made its products accessible in more than 150 countries.
Mattel's Digital Transformation Strategy
Mattel has adopted state-of-the-art technology through several key initiatives. The company launched Mattel Creations in 2020, an online platform that offers exclusive collectibles and collaborations. This digital marketplace helps engage collectors and create new revenue streams.
The transformation goes beyond e-commerce. Mattel has built a dedicated team to explore AI applications in business functions of all sizes. These initiatives help improve both operations and product development. The company's partnership with Shopify has scaled its e-commerce capabilities rapidly, especially for limited edition releases that sell out within minutes.
The company's circular economy initiatives reflect its steadfast dedication to sustainability. The American Girl Doll Hospital repaired over 28,000 dolls in 2020, which extended product lifecycles and strengthened customer relationships. The Mattel PlayBack program lets consumers return toys for recycling to support environmental responsibility.
LEGO Group: Building the Future (The largest toy company in the world 2024)

Image Source: LEGO
LEGO Group stands out among the largest toy companies with its bold environmental commitments and educational influence. The company's strategic initiatives cover sustainable manufacturing, state-of-the-art learning, and global market reach.
LEGO's Innovation in Sustainable Manufacturing
LEGO's environmental spending jumped 60% in 2023 compared to 2022. The company wants to double its annual environmental investment by 2025 versus 2023 levels. Their dedication to sustainability shows in their materials innovation:
Material Type | Application | Sustainability Impact |
Bio-PE | 200+ botanical elements | Made from sugarcane |
arMABS | 500+ transparent elements | Contains 20% recycled marble |
ePOM | Wheel axles | Uses renewable energy and bio-waste CO2 |
LEGO achieved 18% certified mass balance resin purchases in 2023, which means 12% came from renewable sources. The numbers look even better now, with 30% of resin purchases certified in early 2024.
LEGO's Educational Initiatives
LEGO's educational focus emphasizes scientific learning and skill development. LEGO Education has revealed 120+ standards-aligned science lessons for students aged 5-11+. These lessons explore various topics including:
Biomimicry lined up with Next Generation Science Standards
Natural event impact reduction studies
Kinetic energy exploration
LEGO's social responsibility programs reached 9.8 million children in 2023, surpassing their 8.8 million target. Their flagship Build the Change program involved more than two million children worldwide on environmental issues.
LEGO's Global Market Expansion
LEGO's growth remains strong, with sales climbing 13% to 31 billion Danish crowns in the first half of 2024. This performance is a big deal as it means that the overall toy market, which stayed flat during the same period.
LEGO expanded its retail footprint by opening 41 new stores in early 2024, including Southeast Asia's largest store in Jakarta. The company's manufacturing capabilities will grow through new factories in Vietnam and Virginia, USA, scheduled to open in 2025 and 2027 respectively. LEGO also boosted capacity at existing facilities in Mexico, Hungary, and China.

Image Source: License Global
Hasbro stands among the world's biggest toy companies and has grown into a powerhouse in gaming and digital entertainment. The company connects generations through storytelling and play with more than 1,800 iconic brands.
Hasbro's Entertainment Portfolio
Their entertainment division has an impressive collection of brands that create premium content for multiple platforms. Their brand portfolio includes:
Category | Notable Brands |
Gaming | MAGIC: THE GATHERING, DUNGEONS & DRAGONS |
Action | NERF, TRANSFORMERS |
Creative Play | PLAY-DOH, PEPPA PIG |
Classic Games | MONOPOLY, CLUE |
MAGIC: THE GATHERING hit record numbers in 2023. The Lord of the Rings set became their most successful release ever. This brand will likely become Hasbro's first billion-dollar franchise.
Hasbro's Digital Gaming Division
Hasbro evolved from a traditional toy maker into a digital-first company. They invested USD 125 million in video game development. Their digital strategy produced remarkable results:
Monopoly Go! became the fastest mobile game to reach USD 1 billion in the U.S.
D&D Beyond platform has over 18 million registered users
Licensed digital gaming earned USD 105 million from Monopoly Go! and USD 35 million from Baldur's Gate 3
The company plans to launch one to two new games yearly starting from late 2025. They strengthened their gaming leadership by hiring industry veterans, including executives from the Batman Arkham series and BioWare.
Hasbro's Revenue Growth Strategy
Their growth strategy focuses on operational excellence and digital expansion. The company set bold targets through 2027:
Reach USD 8.5 billion or more in revenue
Push operating profit margin to 20%
Increase profit by 50% over three years
Achieve USD 750 million in gross cost savings by 2025
The company adopted a "Fewer, Bigger, Better" approach and removed about half of its unprofitable SKUs. Their direct-to-consumer platform combines Hasbro Pulse and D&D Beyond. This digital business should reach USD 1 billion with over 50 million accounts by 2027.

Image Source: MGA Entertainment
MGA Entertainment, the world's largest private toy company, shapes the toy industry through breakthrough product lines and mutually beneficial market expansion.
MGA's Popular Toy Brands
Several chart-topping brands fill the company's portfolio. Rainbow High leads the fashion doll market and ranks as the top fashion doll in the U.S., UK, Germany, and Italy. The brand achieved remarkable success:
Miniverse has emerged as another powerhouse brand among Rainbow High, securing the second position in growth properties. The brand's success comes from its breakthrough "make it" component, now protected by a patent that ensures product authenticity.
MGA's Marketing Innovation
MGA's marketing strategy centers on digital platforms and influencer partnerships. Their TikTok-centric approach for Miniverse delivered impressive results:
140 million impressions since June
54% boost in social media engagement
119% increase in brand recall
Through collaboration with nearly five dozen influencers, the company strengthened its market presence. The "Bite Size" reality competition series on TikTok gathered almost 50 million views.
MGA's Market Performance
Strategic growth initiatives drive MGA Entertainment's market performance. The company makes about 70% of its toys in China while producing the rest in the United States and Poland. International sales contribute less than 50% to the business, but MGA wants to increase this share by expanding in Europe and Latin America.
The company invested heavily in advertising, spending under USD 100 million on digital, print, and national TV campaigns. MGA launched 11 new product lines in the last twelve months, showing its steadfast dedication to breakthroughs.
Growth strategy goes beyond product development. MGA doubled its research and development budgets to bring breakthrough toys to market. All the same, the company keeps prices accessible, offering more than 625 toys at USD 10 or less.
MGA expects substantial growth in 2024, with Miniverse projected to become the number one toy brand globally. The company's dedication to breakthroughs shows in upcoming launches, including Armorsaurs in early 2025.

Image Source: PR Newswire
Innovation powers Spin Master's position as a leading tech-forward toy company. The company's strategic focus on artificial intelligence and digital transformation shapes how children play today.
Spin Master's AI Integration
The company dedicates itself to technological advancement with a focus on robotics and augmented reality. Spin Master adds robotics, augmented reality, and artificial intelligence to toys at groundbreaking levels. A major breakthrough arrived with Air Hogs Connect: Mission Drone, which brought together three technologies:
Technology Components | Implementation |
Quad Hardware | Advanced drone mechanics |
Mobile Application | User-friendly interface |
Augmented Reality | Immersive gaming experience |
The digital gaming division grew through strategic collaborations. Platforms like Toca Boca and Sago Mini have reached over 350 million downloads.
Spin Master's Product Development
A resilient 36-month brand innovation pipeline serves as the life-blood of their growth strategy. Their global research and development network has:
Internal R&D, engineering, and design teams
Network of 200 inventors submitting 3,000 ideas annually
Advanced Concepts Team scouting worldwide innovation
This integrated approach created breakthrough products like Hatchimals that changed the unboxing experience. Their latest innovation, HEX BOTS, shows their steadfast dedication to autonomous robotics and sensory play.
Spin Master's Growth Trajectory
The financial results prove their successful innovation strategy. Toy Revenue jumped by USD 209.40 million or 34.8% to USD 810.90 million. Toy Gross Product Sales reached USD 922.70 million with a 36.0% increase.
Future expansion plans include:
Direct distribution in Russia, Switzerland, Austria, and Greece
Strategic collaborations with global entertainment properties
Investment in digital gaming platforms
Digital transformation reaches beyond products. The integration of Melissa & Doug should generate between USD 420.00 million to USD 430.00 million in Toy Gross Product Sales. The company plans to achieve approximately USD 6.00 million in Net Cost Synergies toward a target of USD 25.00 million to USD 30.00 million by 2026.

Image Source: databot
VTech Holdings, now 45 years old, stands as a pioneer in electronic learning products for children. The company shapes the future of learning through play with its dedication to educational excellence.
VTech's Learning Products
VTech's product portfolio serves multiple age groups and developmental stages and launches more than 100 new products each year. Their educational lineup has:
Category | Product Examples | Educational Focus |
Infant & Toddler | Touch & Teach Sea Turtle, Drop & Go Dump Truck | Early Development |
Preschool | KidiZoom Smartwatch DX4, Little Apps Tablet | Interactive Learning |
Elementary | Kidi Star Drum Pad, Race & Learn Driver | Creative Expression |
VTech's LeapFrog brand has been a game-changer in learning systems for over 20 years. Their proprietary learning tablets and developmental games create customized experiences that build children's confidence.
VTech's Technology Integration
VTech's products combine advanced educational expertise and innovative technology to support age-appropriate development. Their technology integration strategy has:
State-of-the-art educational expertise led by dedicated learning teams
Interactive learning systems accessible in 31 different languages
Customized learning experiences through adaptive technology
VTech leads the global market in electronic learning products from infancy through toddler and preschool stages. Their innovative products have got more than 90 industry awards from trusted parenting websites, toy industry experts, and major retailers.
VTech's Market Position
VTech dominates multiple market segments. The company leads in electronic learning toys from infancy through toddler to preschool in the US and Canada. Their achievements show:
Number one position in the baby monitor market in US and Canada
UK's most trusted baby monitor brand recognition by BrandSpark International
Prestigious 'Trophée de l'innovation' award in France
VTech's financial outlook stays positive despite market challenges. The company expects increased revenue for 2025 due to higher electronic learning products sales in the U.S.. This growth comes from:
Declining material costs
Improved product mix
Boosted branded business sales
A dedicated team of in-house learning experts gives analytical insights for new product development. This steadfast dedication to educational excellence keeps VTech among the largest toy companies globally.

Image Source: License Global
Bandai Namco stands as one of Asia's largest toy companies in 2024, with its influence reaching way beyond the reach and influence of traditional gaming and entertainment sectors.
Bandai's Global Expansion
The company's international growth strategy focuses on reaching ambitious targets. Their overseas sales represent 27.8% of total revenue, and they want to push this to 35% by March 2025. The company plans to boost this number to 50% in the coming years.
North America and China represent their main expansion territories. Bandai Namco strengthens its position through:
Region | Strategic Focus | Implementation |
North America | Market Leadership | Improved distribution networks |
China | Core Growth | Local partnerships |
Europe | Brand Development | Regional marketing |
Southeast Asia | Retail Expansion | New store openings |
Bandai's Entertainment Ecosystem
Bandai Namco's entertainment portfolio covers multiple sectors, making it the world's eighth-largest video game company. Their digital gaming division achieved soaring wins, with recent releases showing impressive results:
Dragon Ball: Sparking! ZERO sold over 3 million units in its first 24 hours
Elden Ring's Shadow of the Erdtree DLC generated "favorable results" with 5 million units in three days
The company's video game rights extend to several anime licenses, creating a diverse entertainment ecosystem. Their gaming segment showed strong performance, with home console revenue growing 40.7% to ¥110.5 billion.
Bandai's Financial Performance
The company's financial numbers reveal robust growth across key metrics. Bandai Namco's first half of FY25 achieved:
Net revenue of ¥611.3 billion, up 21.8% year-over-year
Operating profit growth of 73.6% to ¥113.6 billion
Digital Entertainment unit sales of ¥228.5 billion, marking a 31.1% increase
Bandai Namco's revenue spreads globally:
Japan: 69.5% of total revenue
Americas: 10.5%
Europe: 10.4%
Asia: 9.6%
The company expects record earnings for the fiscal year ending March 31, 2025. Projected net sales should reach ¥1.15 trillion, a 9.5% year-over-year increase. Operating profit forecasts show ¥160 billion, representing substantial 76.4% growth.
Bandai Namco supports this expansion through organizational restructuring and base consolidation worldwide. The company focuses on developing talent in marketing, creation, and engineering roles.
Comparison Table
Company | Market Position/Revenue | Key Product Lines/Brands | Digital/Tech Initiatives | Strategic Focus | Notable Achievements/Stats |
Mattel | USD 6.10 billion market cap; 48.0% gross margin | Barbie, Hot Wheels, Fisher-Price, UNO | Mattel Creations platform; AI development team | Entertainment and digital growth | Products reach 150+ countries; USD 200M planned savings by 2026 |
LEGO Group | Sales up 13% to 31B Danish crowns (H1 2024) | Traditional LEGO bricks, Educational sets | Learning platforms in digital space | Green initiatives and education | Programs benefit 9.8M children; 18% certified mass balance resin in use |
Hasbro | Target: USD 8.5B+ revenue by 2027 | Magic: The Gathering, Nerf, Monopoly, D&D | Monopoly Go!, D&D Beyond platform | Growth in digital gaming | Monopoly Go! hits USD 1B in US; D&D Beyond reaches 18M+ users |
MGA Entertainment | Largest private toy maker worldwide | Rainbow High, Miniverse | Marketing focused on TikTok | New product development and social media | Leading Fashion Doll brand in US, UK, Germany, Italy; 140M TikTok views |
Spin Master | USD 810.90M toy revenue | Hatchimals, HEX BOTS | AI, robotics, AR technology | Tech growth and gaming | Digital platforms reach 350M+ downloads; 36-month product pipeline |
VTech | Global leader in electronic learning products | Touch & Teach, KidiZoom, LeapFrog | Support for 31 languages; smart technology | Education tech advancement | Top baby monitor brand (US/Canada); launches 100+ products yearly |
Bandai Namco | ¥611.3B net revenue (H1 FY25) | Video games, anime licenses | Gaming platforms | Worldwide market reach | Overseas sales at 27.8%; aims for 35% by March 2025 |
Conclusion
Seven major toy companies show amazing flexibility as markets change faster than ever. Their success comes from digital transformation, environmentally responsible practices, and state-of-the-art education rather than traditional toy manufacturing alone.
Mattel guides entertainment integration while LEGO sets new standards in environmentally responsible manufacturing. Hasbro rules digital gaming and MGA Entertainment has become skilled at social-first marketing. Spin Master pushes tech boundaries, VTech leads in education, and Bandai Namco reaches global audiences through its diverse entertainment offerings.
These industry giants share several winning traits:
Strong digital presence with integrated technology
Educational value and environmentally responsible practices
Global expansion strategies
Resilient financial performance despite market challenges
Each company charts its own path, yet they all welcome state-of-the-art ideas and ways to involve customers. Together, they change how future generations play and learn.
We want to hear your thoughts - tell GSNMC about any rising stars in the toy industry. These emerging companies could make future rankings as they bring fresh perspectives to this ever-changing market.
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